Litecoin Seller Charlie Lee Talks Bitcoin’s Inherent Worth Vs Speculative Trading
Litecoin Creator Charlie Lee Says There Is More To Bitcoin Than Just Speculative Trading
As the originator of Litecoin (LTC), Charlie Lee has made one of the most notable contributions to the development of the crypto ecosystem. Launched in 2011, just three years after Bitcoin, Litecoin was one of the earliest altcoins and it remains in the top 10 cryptocurrencies by market cap.
An MIT Computer Science grad, Lee created the Litecoin protocol while he was working as a software engineer for Google. His Litecoin cryptocurrency network was a hardfork from the original Bitcoin blockchain, operating with a similar proof-of-work mining system, and a hard cap of 84 million LTC.
He recently conversed on the CoinsBank Blockchain Cruise, where he embellished upon the fundamental value of Bitcoin [BTC]. While the price of the cryptocurrency is limited mainly by speculative trading, the intrinsic value of the coin is a different narrative.
Lee narrowed down the essential value of the coin by revealing the four fundamental factors towards it. He started by offering a framework on quotes made by individuals such as the current Chairman of the United States Federal Reserve, and prominent stockbroker Peter Schiff. These quotes stated that the cryptocurrency does not really have intrinsic value, with Schiff calling it “digital fool’s gold”.
Lee, however, offered a different point, declaring that he had 4 points that made Bitcoin intrinsically valuable. He began by speaking about how Bitcoin was not censorable, as it cannot be changed by one person, company or government.
To explain what censorship resistance meant, he proposed a personal anecdote.
Lee stated that he used to play online poker in the years 2010 and 2011 when the online gambling industry was at its peak. However, he related an instance wherein the United States Government came down on the three biggest online poker marketplaces at the time over accusations of wire fraud, bank fraud, and money laundering.
“All the payments to poker sites were blocked. Visa payments, Mastercard payments, and any payment processors. Online poker was effectively censored. It’s my money, why can’t I use it to play poker online when poker is legal, its a game of skill. A couple of months after that I found out about Bitcoin. It’s not controlled by any governments, it’s not controlled by corporations, You can play online poker and no one can stop you.”
The intrinsic value of Bitcoin comes from the fact that it cannot be blocked from spending like fiat money can by the government.
The second point Lee brought up was that transactions on the Bitcoin blockchain were immutable. Due to the general design of the blockchain and the Proof-of-Work algorithm, one transaction in a previous block cannot be changed without doing the work and changing the block header of every block in the blockchain.